Comments for What entry I should do for owner's investment?

The Common Stock account is strictly to show the value of any stock issued for your company.

The Retained Earnings account is an accumulation of profits and losses for your company.

If you don't want to use an Owner's Equity account, you could use a Note Payable-Owner account. That's not what I would suggest, however.

Kathy

Oct 31, 2016Rating

Common Stock A/Cby: Anonymous

Can I use Common Stock A/C ?

Oct 31, 2016Rating

Your Answerby: Anonymous

Okay.

Debit: Cash in Checking...$XXX

Credit: Owners Equity...............$XXX

That's it!

An S-Corp is a unique type of business, because it's a type of Corporation, so you have stock, but the profits flow thru to the owner's personal tax return like a Sole Proprietor. So you can use an Owner's Equity account.

Hope that helps!

Oct 30, 2016Rating

What entry I should do for owner's investmentby: Sultan Rana

Thank you for your reply. Not issued any stock but deposited cash in a bank account as an investment to start a business.